Description: In this article, we collected data from the companies’ roll-forward disclosures related to calendar years 2021 and 2022 on Market Risk Benefit and shared a high-level summary of the Market Risk Benefit volatility that a focus group of companies incurred and summarized the most common ways to mitigate volatility.

Description: Actuaries can leverage cluster modeling to reduce model runtime and cloud compute costs, which can be a real concern as companies transition from an on-premise grid to a scalable cloud solution. We consider practical considerations associated with clustering, through both US statutory and US GAAP lenses. Lastly, the results from a variable annuity liability clustering case study are presented.

Description: An overview of how the VM-31 requirements for documenting PBR approaches and assumptions can/should reflect the Actuarial Standard of Practice on Modeling, ASOP No. 56

Description: In the United States, there has been much industry discussion of the challenges associated with a sustained low interest rate environment, which impacts both the asset and liability sides of the balance sheet in unfavorable ways. The intent of this article is not to focus on these strategic issues. Rather, we attempt to shine a spotlight on some of the modeling challenges that practicing actuaries may experience when incorporating negative interest rates into their models.

Description: This is the final article in a five-part series about accounting for reinsurance under GAAP Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). It looks at some concerns that arise when new reinsurance is purchased to cover previously-issued contracts. The article describes what formal guidance is available. Where that guidance leaves off, the article presents practical solutions to achieving performance objectives.

Description: The article addresses treatment of products with indirect participating features (e.g. declared credited rates) under IFRS 17. Some of the questions that are answered include classification, stochastic modeling requirements, application of the illiquidity premium, methods to systematically allocate between P&L and OCI, and use of locked in discount rates for CSM purposes.

Description: This paper highlights the impact on shareholder equity and AOCI due to the introduction of LDTI during a period of falling interest rates. The paper is intended to provide an example of an analysis that will help actuaries explain the interaction of LDTI and falling interest rates.

Description: This is the first in a series of articles about accounting for reinsurance under GAAP Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). It provides an introduction to the topic, giving an overview of what has and hasn't changed. Changes include a few that directly address reinsurance and others that indirectly result from changes to direct accounting and the existing ties between reinsurance and direct accounting.

Description: Read the September 2020 issue of The Financial Reporter published by the Financial Reporting Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: The article shared results from a survey conducted in May of best-estimate VA assumptions as of year-end 2018. Specifically, the discussion focused on lapse, utilization and separate account return assumptions. The results show that a considerable range of practice across assumptions used by the industry for variable annuities. There is a propensity to use complex assumptions to better match the underlying complexity in the products with the behavior expected from policyholders in a dynamic and volatile economic environment.

Description: Read the December 2019 issue of The Financial Reporter published by the Financial Reporting Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: Feature article discussing the number of challenges associated with ASU 2018-12 related to the measurement of market risk benefits.

Description: The article highlights the key components of the PBR resource manual and analyze its implications for companies' assumption management practice.

Description: Read the September 2019 issue of The Financial Reporter published by the Financial Reporting Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: Feature article discussing how the insurance industry can become more data driven.

Description: This article lays conceptual foundations associated with projecting investment-related discretionary elements of various life insurance and annuity products. It outlines potential implementation approaches that may be appropriate when calculations are performed in a risk-neutral setting. The article concludes that crediting rates in risk-neutral models can be projected as in real-world models, except that the modeled provision for expected credit losses should be modified to equal real-world expected losses initially, but over the projection reflect management’s evolving expectation, moving ultimately to risk neutral expected losses.

Description: A description of KPMG's survey findings of 20 companies about principle-based reserving implementation.

Description: Read the March 2019 issue of The Financial Reporter published by the Financial Reporting Section of the Society of Actuaries.

Description: Read the December 2017 issue of The Financial Reporter published by the Financial Reporting Section.

Description: Read the December 2018 issue of The Financial Reporter, published by the Financial Reporting Section.

Description: The article focuses on implementation considerations for insurance companies that will be implementing both IFRS 17 and US GAAP Targeted Improvements. Many of the practical considerations are common to both implementations and will also be of interest to readers who are only implementing one of these changes.

Description: As companies implement PBR, this article outlines challenges regarding the treatment of accelerated underwriting under VM-20 and in light of future innovation.

Description: Read the September 2018 issue of The Financial Reporter published by the Financial Reporting Section.

Description: Read the June 2018 issue of The Financial Reporter published by the Financial Reporting Section of the SOA.

Description: This article is to outline the new requirements for valuation rates in VM-22, highlighting key differences and example calculations to enhance understanding.

Description: The article discusses industry practices relating to US GAAP SOP 03-1 valuation for universal life with secondary guarantee products.

Description: This article will focus on introducing where IFRS17 differs from US GAAP conceptually, and key aspects of this paradigm shift from actuaries’ perspective.

Description: This article describes changes to financial reporting for variable annuities under US GAAP, IFRS and Statutory regulations, and implications for hedging.

Description: A description of how auditors or examiners can evaluate whether PBR reserves are adequate and reasonable.

Description: Read the September 2017 issue of The Financial Reporter published by the Financial Reporting Section.

Description: Describes a process for identifying relevant industry experience to credibility-weight with relevant company experience to set modeling assumptions and margins.

Description: Read the March 2017 issue of The Financial Reporter published by the Financial Reporting Section.

Description: Different points of view about IFRS are explained.

Description: A status update on research projects sponsored or co-sponsired by the Financial Reporting Section.

Description: Formulas for changes in GAAP liabilities and liability accrual rates are shown for three assumption update methods—retrospective, prospective and immediate.

Description: A description of current council member areas of responsibility, Life & Annuity Symposium sessions to be sponsored, and other future projects.

Description: A discussion on how to use data visualization for model controls.

Description: Summary of the NAIC and SOA's PBR Survey.

Description: Update on IASB Activities during the last quarter of 2016.

Description: Proposes an approach to develop dynamic assumptions for living benefits using a combination of available experience data and predictive modeling techniques.

Description: A question from a reading regarding the accuracy of a comment from the December 2016 issue of The Financial Reporter article titled “Negative GAAP Term Insurance Reserves—to Floor or Not to Floor?”

Description: A discussion of the FASB's Sept. 29, 2016 issued exposure draft on targeted improvements to accounting for long- duration insurance contracts.

Description: A discussion of areas of AAT where the Actuary uses a considerable degree of discretion and judgment and guidance is limited.

Description: December 2016 edition of The Financial Reporter

Description: Financial Reporter

Description: On October 30, 2015, the SOA Assumption Development and Governance Group, an informal discussion group consisting of nearly 200 interested actuaries with topics pertaining to actuarial assumption development and governance, organized an industry discussion call on end-to-end assumption documentation practices. The purpose of this call was to generate a large list of ideas for best-practice assumption documentation. More than thirty companies were represented in the call, including direct insurers, reinsurers and consulting firms. This article is the work product of the discussion written by Laurie Li and Alex Zaidlin.

Description: December 2015 issue of The Financial Reporter

Description: After a summary of FASB decisions in their GAAP Targeted Improvements project, this article describes several issues that will need to be resolved either by the board or in actuarial practice and argues for seeking solutions that provide meaningful results without overly complicating valuation processes.

Description: Full Issue Financial Reporter Issue 102

Description: Examination of full surrender and benefit utilization industry experience for Variable Annuities with and without Guaranteed Lifetime Withdrawal Benefits. Part 1 of 3 articles focuses on full surrenders and building a dynamic surrender function using predictive modeling tools.

Description: Financial Reporting Section, Issue 101, June 2015, The Financial Reporter

Description: Introducing tools to help actuaries explain non-traditional DAC and SOP reserve movements no non-actuarial audiences.

Description: Financial reporter March 2015 Issue 100

Description: A description of the requirement to disclose a reconciliation of the opening and ending balance of liabilities for insurance contracts in the proposed new IFRS for insurance, and reasons why it should be seen as more than a compliance effort.

Description: The June 2014 issue of the Financial Reporting Section’s newsletter, The Financial Reporter.

Description: Article discussing the risk focused exam approach incorporated in the Financial Condition Examiners Handbook.

Description: Research is a primary mission of the Financial Reporting Section and is the largest use of section dues. This scorecard will keep section members informed about research projects sponsored or co-sponsored by the section.

Description: Read the complete issue of the March 2014 "The Financial Reporter" newsletter.

Description: Readers are given an introduction to a PBA Implementation Guide for Life Products.

Description: The December 2013 issue of the Financial Reporting Section’s newsletter, The Financial Reporter.

Description: Chairperson’s column addressing the changes the new year will bring.

Description: Feature article describing the events of the Valuation Actuary Symposium in Indianapolis, In.

Description: This scorecard will keep section members informed about research projects sponsored or co-sponsored by the section.

Description: Feature article summarizing the discussions of The Assumption Development and Governance Group (sponsored by the Financial Reporting and Product Development Sections)—a group formed in April to offer an opportunity for actuaries to participate in discussions around key topics and establish industry contacts in the field of assumptions.

Description: The September 2013 issue of the Financial Reporting Section’s newsletter, The Financial Reporter.

Description: Feature article discussing the changes the International Accounting Standards Board’s new accounting standard will bring.

Description: Research is a primary mission of the Financial Reporting Section and is the largest use of section dues. This scorecard will keep section members informed about research projects sponsored or co-sponsored by the section.

Description: This scorecard informs section members about research projects in progress and recently completed that are sponsored or co-sponsored by the section.

Description: Considerations when developing internal models for use in Solvency II.

Description: The March 2013 issue of the Financial Reporting Section’s newsletter, The Financial Reporter.

Description: Information regarding the Economic Scenario Generator to be used when calculating Principle-based reserves and implementing VM20.

Description: This research scorecard will keep section members informed about research projects sponsored or co-sponsored by the Financial Reporting Section.

Description: The December 2012 issue of the Financial Reporting Section’s newsletter, The Financial Reporter.